The Board’s goals in conducting the investigation were to understand the
root causes of improper sales practices in the Community Bank, to
identify remedial actions to ensure these issues can never be repeated
and to help rebuild the trust customers place in the bank.

Shearman & Sterling conducted 100 interviews of current and former
managers, employees, members of Wells Fargo’s Board of Directors and
other relevant parties and searched more than 35 million documents. In
addition, Shearman & Sterling reviewed the product of hundreds of
interviews of more junior employees conducted by or on behalf of Wells
Fargo. Shearman & Sterling also reviewed information concerning more
than 1,000 investigations of lower-level employees terminated for sales
integrity violations, which Wells Fargo’s Internal Investigations group
conducted.

Chairman of the Board Stephen Sanger said, “This exhaustive
investigation identified serious issues related to Wells Fargo’s
decentralized structure and the sales culture of the Community Bank, all
of which the Board and management have been working diligently to
rectify. In addition to the progress we’ve already made to fix these
issues, the Board has taken significant employment actions and executive
compensation actions totaling over $180 million. The trust customers,
employees and investors place in Wells Fargo is paramount -- and our
work to rebuild and strengthen those relationships continues in earnest.
The Board has total confidence in management, and while this
investigation has concluded, our oversight of the Company and commitment
to accountability are stronger than ever.”

The investigation identified a confluence of factors that led to the
sales practices issues, which are being addressed by the Board and
management, including:

The Community Bank’s sales culture and performance management system

Wells Fargo’s decentralized corporate structure, which gave too much
authority and autonomy to the Community Bank’s senior leadership
without the necessary oversight and encouraged deference to the
business units, which housed their own risk and human resource
management systems

Carrie Tolstedt and other Community Bank leaders were unwilling to
change the sales model or recognize it as the root cause of the
problem, resisted and impeded scrutiny or oversight from corporate
risk management and the Board and, when forced to report, minimized
the scale and nature of problems

Former Chairman and CEO John Stumpf, relying on the Bank’s decades of
success with cross-sell and positive customer and employee survey
results, was too slow to investigate or critically challenge the sales
practices at the Community Bank and to appreciate the seriousness and
the substantial reputational risk to Wells Fargo

The Board has already taken numerous actions and supported management
steps to address these issues, promote accountability and strengthen
oversight, including:

Named Mary Mack head of Community Banking, succeeding Carrie Tolstedt

Named Tim Sloan CEO upon the immediate retirement of John Stumpf

Separated the roles of Chairman and CEO, and changed Company by-laws
to require such separation

Terminated for cause Carrie Tolstedt, former head of Community Banking

Terminated for cause four current or former senior managers in the
Community Bank

Taken executive compensation actions totaling over $180 million (see
below)

The compensation actions, among the largest in corporate history,
include clawing back approximately $69 million from John Stumpf and $67
million from Carrie Tolstedt. These amounts include a total of
approximately $60 million in previously forfeited unvested equity awards
($41 million from Stumpf and $19 million from Tolstedt) and additional
clawbacks from Tolstedt of vested options currently valued at
approximately $47 million and from Stumpf of approximately $28 million
in previous equity awards.

About Wells Fargo

Wells Fargo & Company is a diversified, community-based financial
services company with $1.9 trillion in assets. Founded in 1852 and
headquartered in San Francisco, Wells Fargo provides banking, insurance,
investments, mortgage, and consumer and commercial finance through more
than 8,600 locations, 13,000 ATMs, the internet (wellsfargo.com) and
mobile banking, and has offices in 42 countries and territories to
support customers who conduct business in the global economy. With
approximately 269,000 team members, Wells Fargo serves one in three
households in the United States. Wells Fargo & Company was ranked No. 27
on Fortune’s 2016 rankings of America’s largest corporations. Wells
Fargo’s vision is to satisfy our customers’ financial needs and help
them succeed financially.

Cautionary Statement About Forward-Looking Statements

This news release contains forward-looking statements about our future
financial performance and business. Because forward-looking statements
are based on our current expectations and assumptions regarding the
future, they are subject to inherent risks and uncertainties. Do not
unduly rely on forward-looking statements as actual results could differ
materially from expectations. Forward-looking statements speak only as
of the date made, and we do not undertake to update them to reflect
changes or events that occur after that date. For information about
factors that could cause actual results to differ materially from our
expectations, refer to our reports filed with the Securities and
Exchange Commission, including the discussion under “Risk Factors” in
our Annual Report on Form 10-K for the year ended December 31, 2016, as
filed with the Securities and Exchange Commission and available on its
website at www.sec.gov.